Question 2 of 4 - 14 3 ... Current Attempt in Progress Wildhorse has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 20,000 RecRobos is as follows: Cost Direct materials ($41 per robot) $820,000 Direct labour ($25 per robot) 500,000 Variable overhead ($5 per robot) 100,000 Allocated fixed overhead ($24 per robot) 480,000 Total $1,900,000 Wildhorse is approached by Penny Worth Inc., which offers to make RecRobo for $72 per unit or $1,440,000. Using incremental analysis, determine whether Wildhorse should accept this offer under each of the following independent assumptions: (1) Assume that $320,000 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Q SearchQuestion 2 of 4 - 14 E . . . (1) Assume that $320,000 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Net Income Increase Make Buy (Decrease) $ $ $ $ $ Should the offer be accepted? Q SearchQuestion 2 of 4 -13 3 ... Current Attempt in Progress Sunland Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Amount Per Unit Sales $4,140,000 $50.00 Cost of goods sold 2,898,000 35.00 Selling and administrative expenses 339,480 4.10 Net income $902,520 $10.90 Fixed costs for the period were cost of goods sold of $828,000, and selling and administrative expenses of $149,040. In July, normally a slack manufacturing month, Sunland receives a special order for 8,280 basketballs at $30.00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses. (a) Q SearchQuestion 3 of 4 -13 = Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Incremental revenue LA Incremental cost: Variable COGS $ Variable S & A Additional S & A Incremental income eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Question Part Score --/2Question 4 of 4